Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
9 l( p8 w. f. V. x: I1 ecompanies producing Jet fuels but Biofuels. Also no wonder if some of
9 y# s1 a$ j2 y, ?) ^these oil producer will go bankrupt or out of the business even if
8 ]/ m+ T+ w; acrude prices improves. This implies also to good names such as Shell,
! s" Q% x. n* AEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
- F4 s5 r( i0 l6 l- H

There are several reasons the price of oil is decreasing in the face
* M) G7 F5 F$ F5 [& M% Kof so much news. These reasons are:

4 F) ?2 `7 @! p) X
1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


8 l5 M# p% t+ C  N3 Y/ c; `6 S2. New natural gas has been found in Pennsylvania and West Virginia.
! f5 d9 `: C, S+ @This is the largest find in North America.


3. New methods of injecting CO2 and surfactants into oil wells is
* k& I0 J: d( ^: R, q  t/ k0 Xbeing used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
9 j/ Z5 U' Z! G) tracing to produce bio fuels.
2 Y7 q4 z- B' a4 f& C7 ?
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5. Virtually every restaurant in the US and all food processing plants
+ P. b! _# @, c0 H. C, s& w. H8 Jare now selling their used oil to bio-diesel producers. Every pork,
+ N- |" p. s: mcattle, turkey and chicken processing plant will soon sell their fat
  `6 o: i6 |5 F' V1 Q* Kto bio-diesel producers. One pork processing plant in Oklahoma is
% Q* G( Y0 e/ _. n4 J* z$ Mproducing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
4 Z% P3 |) G0 E; ?$ Cexpected to be built in the future. Much of the energy they produce
0 a% Y! O1 I* g: @0 [, F8 ?' p  c8 b$ owill replace oil.
- D5 @0 E/ A& [+ u

7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
( U( L# w% I* P8 ^8 k% W4 S0 Fwith new more fuel efficient equipment. Airlines and railway companies
% Y7 ^- y9 `2 p$ t9 P% Gare experiencing 20% to 25% better fuel econony with the new
equipment.


; ~! R0 s) `4 v2 l$ Q  k9 JAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
) `: ~  H0 L9 J! u& D  ~) [7 o5 `oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.
5 ~" d4 `3 B& r( |/ Q+ [/ [2 }- @
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* M3 Q9 Z+ c: j  R' i& e10. Solar, wind and ocean energy is displacing oil as an energy
. l) S# F. J( K8 x) |; |) bsource. Three new wind turbines are being erected every day in the US.
3 r! q$ y: n. z9 c% |( `

Each of the above by itself will not make a large difference in the
# v: T  u" d/ Tprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
- v- J1 z+ O( W5 j6 Pto control oil prices.
) F6 C4 g- K& ^/ x8 Q3 d

/ D8 Y6 b/ r3 p9 mWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


; J  V, U4 w6 B9 CThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
9 ^, x1 A' P- @* h1 Z) E2009 ... FYI-Only